Siemens FranceBest In France - Group ES2D Siemens France : A Perfect Integration Yvan Moreau, Huang...

Best In France - Group ES2DSiemens France

Siemens France :

A Perfect Integration

Yvan Moreau, Huang Bin, Andrei Rotaru, Feargal Brady


Thanks

We are very grateful to Mr G. Maisondieu, Chief Financial Officer of Siemens France, to have accepted to spend time answering our questions, particularly at this period of the year


Agenda

1. Background 2. Key Figures3. Product Lines4. The Values of Siemens5. The HR Policy6. Did Siemens encounter hurdles?7. How is Siemens France managed?8. Development Strategy9. Recommendations


• Siemens is not at all a newcomer in France: its first patent was deposited in France in 1850

• In 1851, Werner Siemens presented a thesis at the French Scientific Institute

• In 1878, the company “Siemens Frères Ingénieurs électriciens” was founded in Paris

• Then, the story of Siemens in France has been a very rich path of innovations, acquisitions partnerships and creations of numerous companies

Background


• In the last years, Siemens reinforced its landmark on the French territory by:

– Creating R&D centres (commutation systems in Lannion and Design of Integrated Circuits in Nice)

– Opening production plants

– Creating new profit centres: Siemens Business Services, Siemens Energy

– Buying the Turbines activity from Alstom

– Launching innovative products (medical systems and telecommunication)

Background


• Turnover: 3.4 billion euros in 2003 (+12% vs. 2002)

• 12 000 employees: average age of 39, 30% of women and 70% of men

• 40% employees in the Paris area

• 60% outside Paris

Key Figures


Siemens France offers a very wide range of products, from the nuclear power industry to microchips. The products are split into five categories:

• Telecommunications

• Industry

• Medical Systems

• Transportation systems

• Automobile Equipments

Product Lines


• Since Siemens is becoming increasingly multicultural, it is trying to keep the core values of Siemens but also to adapt to the countries if necessary

• Since the quotation of Siemens on the New York Stock Exchange, some American values are beginning to influence Siemens’ “way of life” (influence of short term financial ratios).

The Values of Siemens

values

Trust and confidence

Importance ofFamily

Importance of quality work

Long term investmentin personnel and in fixed assets


• The CEO should be native from the country*

• Siemens HR policy: the CEO and the CFO must be appointed by the Headquarters

• Currently, on the Executive Committee of Siemens France, 3 persons out of 10 come from Siemens Germany or have been appointed by the Headquarters.

• The policy is therefore to help people from the middle management to increase their potential (eventually via training courses) to become future Siemens managers in their home countries

The Human Resources Policy

*Philippe Carli, a French person, is currently the CEO at Siemens France


• Siemens did not encounter many hurdles to pursue its integration:

– Employees are more and more mobile within and outside the company

– Employees are aware of culture differences, what makes the integration easier. Misunderstandings between the Headquarters and France are less and less frequent

No real cultural, structural or fiscal problems

Siemens France adapted to the 35 h / week rule without any problem: Siemens’ policy is to adapt and tackle problems, and not to find ways to avoid them

Did Siemens encounter hurdles in France?


• Siemens France is managed locally, and not as a “satellite” of the Headquarters.

• Siemens France reports on a regular basis (monthly reportings, budgets and forecasts) to Siemens AG, as a subsidiary would report to its main shareholder

• Siemens France therefore has a very independent management. Its duty is to respect the commercial and financial objectives that have been agreed upon.

How is Siemens France managed ?


• The activities of Siemens have changed a lot. They now require high innovations and investments:

– 70% of the products are less than 5 years old

– Siemens has become the 5th Group worldwide for R&D investments

• This is why Siemens tries to develop around the following core activities: telecommunication, industry, medical systems, transportation systems, equipment for automobiles

• All the activities of Siemens are present in France, and it has always been so

Development Strategy in France


• For the Siemens products, the situation of the French market is very specific :

– It is the the home market of many international groups (Alcatel, Alstom, Schneider…)

– The competition is therefore very strong

– In addition, The French companies tend to consider the French market as their “chasse gardée”

• This is why the strategy of Siemens is to be considered as a French company of German origins, instead of being seen as a German company in France.

• The creation of the “Fondation Siemens” is a way to settle Siemens in the French economic landscape and to increase the visibility of the brand on the French market

Development Strategy in France

Goal : to be the first internationalIndustrial Company in France


• France is a very competitive market:

– Do not invest in France without quality ready- to- launch products

– Bring innovative products

– Invest in R&D

– Differentiate from your competitors

Recommendations to a future investor in France

Siemens FranceBest In France - Group ES2D Siemens France : A Perfect Integration Yvan Moreau, Huang...

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